AI chip revolution ahead? Nvidia plans to collaborate with India, utilising its designing talent on a custom AI chip for applications like the Kavach system for Indian Railways.
Nvidia has proposed a collaboration with India to develop a chip, according to a report by the Economic Times. This initiative aims to capitalise on India’s robust semiconductor design capabilities while tapping into its growing market.
Nvidia’s founder and CEO, Jensen Huang, presented this proposal to Prime Minister Narendra Modi during a meeting in the U.S. earlier this year. Nvidia’s valuation has soared as its graphics processing units (GPUs) play a crucial role in the current artificial intelligence (AI) boom, which is reshaping the tech landscape.
Ashwini Vaishnaw, the Union Minister for Electronics and IT, also confirmed the discussions with Nvidia regarding the development of the AI chip.
According to the report, Nvidia intends to leverage India’s extensive chip design resources to create a chip tailored for Indian applications. They are discussing the specifics, including costs, benefits, and potential use cases for this collaboratively developed chip.
One example mentioned is its application in enhancing the security system of Indian Railways, called Kavach. This chip could also support applications for Indian startups and government initiatives under the AI mission.
Huang is set to visit India later this week for his annual trip. During his visit last September, he and PM Modi discussed India’s significant potential in the AI sector. Huang recalled Modi’s statement about India not exporting raw materials only to import finished products, highlighting the importance of leveraging local data for AI development.
The proposed chip’s core design would come from Nvidia’s partners, like Arm or AMD, while the customisation could involve India’s Centre for Development of Advanced Computing (C-DAC) or a private chip design firm. India’s large pool of chip designers makes it a prime candidate for this collaboration, according to ET sources.
Furthermore, experts noted that Nvidia’s partnership with Reliance Industries and Tata Group could benefit from a co-developed chip tailored to local needs.
This initiative would boost local intellectual property, provide cost-effective solutions, drive innovation in AI startups, and reduce supply chain risks, marking it an asset for the India Semiconductor Mission as the first cloud-based chip designed in India.
Huang highlighted India’s exceptional talent in computer science and the importance of seizing the moment in the AI industry during his discussions with PM Modi, expressing his eagerness to deepen partnerships with India.
Based in Santa Clara, California, Nvidia’s market capitalisation has surpassed that of Microsoft and Alphabet, making it only slightly behind Apple, the most valuable company globally, at $3.39 trillion.
